Jakarta (MidLand) – Finance Minister (Menkeu) Sri Mulyani said that there was a net foreign capital inflow of IDR 60.67 trillion into the domestic financial market from January to December 12, 2023 (year to date/Current year)
“This capital flow is very volatile, and sometimes depends on sentiment regarding the direction of monetary policy developments in the United States,” Sri Mulyani said at the press conference for the December 2023 edition of OUR APBN in Jakarta on Friday.
It said that the flow of foreign capital was driven by domestic investments in the government bond market (SBN) amounting to IDR 76.33 trillion (year-to-date), while in the stock market there was an outflow of capital foreigners worth IDR 15.66 trillion (year-to-date).
Therefore, the national SBN market presents a positive and stable trend in a global financial market context that still tends to be volatile, so the returns (product) The 10-year SBN also improved to 6.74% on December 13, 2023 from 7.22% on October 24, 2023, which is in line with the decline in the yield of US 10-year bonds.
Elsewhere, the yield on Indonesian 10-year global bonds also stood at a low level of 4.94%.
Regarding the exchange rate, the State Treasurer also assessed that the rupee is still maintained with an appreciation of 0.64% (ytd). The US dollar index has also steadily strengthened since the beginning of the year.
Garuda’s current exchange rate appreciation is positive because most exchange rates in G20 and ASEAN countries are still depreciating.
The countries in question include the Philippine peso which depreciated by 0.62% (ytd), the Thai baht by 3.42% (ytd), the Chinese yuan by 4.02% (ytd), the Malaysian ringgit by 10 .95% and the Japanese yen 10.95% (ytd).
“Even though the world and developed countries are adopting policies higher for longer, “Our SBN yields, both in rupee and global, are still relatively stable and are not driven to rise in line with SBN yields in the US,” he said.
Reporter: Agatha Olivia Victoria
Publisher: Nurul Aulia Badar
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